Do More With Reuters
Partner Services

Instinet's Chi-X Global to challenge exchanges

Fri Feb 8, 2008 11:42pm IST
 
Email | Print | | Single Page
[-] Text [+]

By Daisy Ku

LONDON, Feb 8 (Reuters) - Instinet, an agency broker owned by Nomura Holdings (8604.T: Quote, Profile, Research), announced on Friday the formation of Chi-X Global, as it expands its alternative trading platforms to compete with traditional exchanges around the globe.

Instinet launched Chi-X Europe in March last year to battle traditional exchanges such as the NYSE Euronext (NYX.PA: Quote, Profile, Research)(NYX.N: Quote, Profile, Research), London Stock Exchange (LSE.L: Quote, Profile, Research) and Deutsche Boerse (DB1Gn.DE: Quote, Profile, Research).

A consortium of 13 investment banks, including eight of the nine investment banks funding Turquoise, a rival system set for launch in September, took "a significant minority stake" in Chi-X Europe last month.

"Based on the favourable response from market participants to Chi-X Europe, we feel there exists an excellent opportunity to bring the comparable cost savings and market efficiencies to investors in other markets, thus our formation of Chi-X Global," Instinet co-CEOs Anthony Abenante and Fumiki Kondo said.

Chi-X Global, which holds trading platforms in Europe, Canada and Asia, said it is also applying for regulatory approval to launch Chi-X Australia.

Chi-X Europe traded 1.9 billion shares in the fourth quarter in 2007, up 177 percent from the third quarter, with a 71 percent increase in turnover to 34.6 billion euros ($50.2 billion).

Analysts expect European exchanges to lose 10 percent of their market share in the next three years with the rise of new trading vendors such as Chi-X and Turquoise. (Editing by Sue Thomas)

Russian Finance Minister Alexey Kudrin poses with his G20 colleagues and central bank leaders during the family photo at the G20 Finance Ministers meeting at a hotel in St. Andrews, Scotland. REUTERS/POOL New
Pledge to support economies

G20 financial leaders pledged to prepare strategies to end emergency support for their economies, but to keep the aid flowing until recovery was assured.  Full Article | Related Story 

Photo
Miss England gives up crown over brawl reports Friday, 6 Nov 2009 

LONDON (Reuters) - Beauty pageant winner Miss England gave up her title on Friday after reports she had been involved in a nightclub brawl with another beauty queen.  Full Article